Mannat Saini, Pune
Dell, the American IT company, recently reported a lay off of around 12,500 workers particularly from their sales team and other departments. The company had announced the layoffs through an ‘internal memo’ stating that the company wished to merge the sales unit and give it an AI touch. The company has substantiated the ruminations by asserting that they will impact the sales department mainly focusing on the managers and senior managers.
Thus, in the message that was published on Dell’s official web-site, the company spoke about the plan, in terms of ‘re-organizing for the times of artificial intelligence, to trim down and to grow’. It submitted that the company is ready to commence the process of reorientation of its investments. The number of employees in the grand total that is likely to be eliminated from the company’s workforce has not been disclosed by the company. Nevertheless, those people at risk formed groups and were using social networks to report these occurrences. By 2023, Dell had already dismissed about ten percent of its personnel in total and had reduced their employee strength from 133, 000 to 120, 000.
Due to the current cases of layoffs, the company is using the severance packages as a way of protecting the employees’ interests. However, there is indication of division amongst the employees claiming that decision making power especially in the issuing out of incentives and stock options has been withdrawn from them. Some of the respondents said that they did not see anything dramatic in these down-scales because there were hints of the move following the cut-back in the budgets and other canceled projects.
The company is confident about coming out of the problems associated with the AI devices defining the new sources of growth.
These patterns are in concordance with the general case across the tech industry where employees and professionals alike are insecure of their positions. AI is also to blame for the present round of starts from Netflix in January 2023 to Intel that merely mentioned that it is to reduce 15,000 employees in 2024. Therefore, the general concept of the layoffs received implies a certain pattern of the elimination of the positions that took place after Gen- AI. However, in this particular case of Intel Chief Executive Officer Pat Gelsinger, he pointed to the trend of AI in an effort to explain the poor revenues growth and the problem of poor optimization he resorted to laying off employees.